Perth Now is reporting that Ms Bishop has decided it "is in the interests of the nation" that she retire.

Steve Ciobo and Chirstopher Pyne are both being weighed up as a possible candidates for Ms Bishop’s foreign affairs portfolio.

Ms Bishop has been deputy Liberal leader for over a decade but failed to win the majority vote in last Friday’s leadership ballot, receiving only 11 votes.

Ms Bishop has served in Parliament for more than a decade

The announcement will come as a huge blow for the Liberal Party, with Ms Bishop popularly supported by the public. In political polls and betting agency odds during this week’s leadership spill Bishop received popular support.

A Roy Morgan poll this week found Bishop would have a good chance of defeating Labor’s Bill Shorten at the next election.

Mr Morrison is expected to announce his new front bench in the next few days.